You Might Want To Think Twice About Mining Bitcoin Here

Updated: 27 January 2023

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US Bitcoin Corp has been ordered to halt its crypto mining operations or pay a fine of $10,000 daily. If the miner continues operations after January 31, the penalty will increase to $25,000 daily.

US mining firm ordered to pay a $10,000 daily penalty

US Bitcoin Corp has been ordered to halt operations by a State Supreme Court Justice or pay heavy penalties. According to Justice Edward Pace, the penalties would follow a temporary restraining order (TRO) imposed against the mining company by Supreme Court Justice Frank Sedita III.

The restraining order against US Bitcoin Corp was issued after the Falls filed for a preliminary injunction requiring the miner to comply with new zoning laws targeting industries that use high energy.

According to Justice Pace, if the mining company has not halted its mining operations by January 31, it should pay $540,000 to Niagara Falls on February 1, dating back from December 9. The judge also informed the lawyers representing the company that the fine would increase to $25,000 daily for operations done past January 31 until the case was determined.

The attorney for US Bitcoin, John Bartolomei, has said that the company will appeal this decision at the State Supreme Court. On the other hand, the attorneys representing the city have asked justice Sedita to find US Bitcoin Corp in contempt of court after failing to abide by the TRO that mandated them to halt their operations in Buffalo Avenue.

The restraining order was issued on December 1, with the city claiming that the mining activities were “a public nuisance” and that they continued to violate the city’s Zoning Code. The restraining order directed US Bitcoin Corp to close its mining activities until the city receives an outcome for a preliminary injunction seeking to close down three crypto mining facilities.

Crypto regulations in New York

Crypto mining regulations in New York have been strict despite the mayor of New York City, Eric Adams, being a Bitcoin bull. After being elected, Adams said he would receive his first three paychecks in Bitcoin.

However, the state’s governor has not been pro-crypto. Kathy Hochul recently signed a moratorium seeking to end fossil fuel use to mine Bitcoin within the state. Hochul noted that this move would ensure New York meets the state’s climate and economic development goals.

However, it appears like miners using renewable energy have not been spared. The US Bitcoin Corp website notes that its Niagara Falls facility used 90% clean energy, but this has not convinced the city to support the mining facility’s operations.

Mayor Adams has also previously opposed crypto-mining activities in the state. However, he later said he would urge the state’s governor to reconsider the bill banning mining activities powered by fossil fuels. Adams noted that he wanted to support mining activities because of the industry’s future.

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